Altcoin
Binance: Evaluating the key takeaways from BNB’s latest quarterly burn event
Posted:
Journalist
- BNB’s total supply shrunk to nearly 150 million as compared to 200 million at the time of launch.
- BNB was up 2.86% at the time of writing.
Binance announced the completion of its 25th quarterly token burn event, meant to slash the supply of the ecosystem token BNB.
In a blog post, the crypto behemoth stated that nearly 2.13 million BNB coins were removed from circulation in the latest round. The strategic move was part of Binance’s commitment to make BNB scarcer and make it more valuable in the near future.
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Breaking down BNB’s burn mechanism
When BNB was launched in July 2017, a pledge was made to remove half of the total supply, or 100 million BNBs, from circulation through a burning procedure. This commitment is automatically honored each quarter and calculated according to the Auto-Burn formula.
The Auto-Burn mechanism automatically adjusts the amount of BNB to be burned based on the BNB price and the number of blocks generated on the BNB Chain during the quarter. Furthermore, BNB Chain also burns a portion of gas fees in real-time using the Real-Time-Burn mechanism.
Apart from the aforementioned mechanisms, the Pioneer Burn Program also helps in decreasing BNB’s circulating supply. The unique initiative factors in lost funds as part of BNB Chain users’ mistakes into the overall burn supply. In the latest round, 314.69 BNB tokens went up in smoke because of the Pioneer Burn Program.
How did BNB react?
As of this writing, the Binance ecosystem was about halfway to its objective. The total supply has shrunk to nearly 150 million, compared to 200 million at the time of BNB’s launch, according to CoinMarketCap.
BNB was up 2.86% at the time of writing. However, it wouldn’t be fair to attribute the increase solely to the burn event. The broader market rallied in the last 24 hours, data showed. At the time of writing, BNB was the fourth-largest crypto with a market cap of over $32 billion.
How much are 1,10,100 BNBs worth today?
Interestingly, despite BNB’s positive price action over the last few days, investors weren’t too optimistic about the exchange token. Data from Santiment showed a noticeable divergence between the Weighted Sentiment and market value of BNB.
Source: Santiment
